FAC Explorer

Finding 1217503 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-12
Audit: 403662
Organization: Metlakatla Indian Community (AK)
Auditor: ALTMAN ROGERS & CO

AI Summary

  • Core Issue: The Community submitted required reports late, including the annual report on April 15, 2025, and the Federal Financial Report 165 days overdue.
  • Impacted Requirements: Compliance with Head Start grant reporting deadlines is critical; late submissions can jeopardize Federal funding.
  • Recommended Follow-Up: Ensure adherence to all reporting deadlines and improve internal controls to prevent future delays.

Finding Text

Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of Health and Human Services Federal Programs: Head Start Cluster ALN: 93.600 Award Numbers: 90CI010107 Award Years: 2024 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: Reporting requirements within the Head Start grant agreement state that annual and semi-annual reports are required to be submitted. The due date is set by the U.S. Department of Health and Human Services, which for the Community is March 1 for annual reports and June 30 for semi-annual reports. Condition and Context: The Community submitted the annual report, due March 1, 2025, late on April 15, 2025. Additionally, the Community had an on-site review by the Office of Head Start (OHS) during fiscal year 2025. During this review, it was discovered that the Federal Financial Report SF-425 submitted for the reporting period ended November 30, 2023 was submitted August 13, 2024 (165 days after the due date). While this is outside the period under audit, this provides additional context to our finding. We also noted that expenditures reported on the June 30, 2025 semi-annual report did not agree to the general ledger and were overstated by roughly $40,000. Cause: Lack of internal control over reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat Finding: No. We believe the finding to be an isolated instance instance and not a systemic issue. Recommendation: We recommend the Community complies with all reporting requirements. Managements Response: Management agrees with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: The Finance Department has implemented stronger internal controls over reporting. Reporting responsibilities and submission timelines have been clearly assigned to the Grants Accountant. In addition, a review process has been established to ensure reports agree with the general ledger prior to submission. MIC is currently in compliance with reporting requirements for Head Start and will continue ongoing monitoring to ensure continued compliance with federal reporting deadline and accuracy requirements. Proposed Completion Date: Implemented in FY2025, ongoing/monitoring and compliance procedures in place.

Categories

Reporting

Other Findings in this Audit

  • 1217502 2025-003
    Material Weakness Repeat
  • 1217504 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.210 TRIBAL SELF-GOVERNANCE PROGRAM: IHS COMPACTS/FUNDING AGREEMENTS $7.68M
15.022 TRIBAL SELF-GOVERNANCE $2.85M
15.034 AGRICULTURE ON INDIAN LANDS $2.30M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.97M
93.600 HEAD START $1.43M
15.021 CONSOLIDATED TRIBAL GOVERNMENT $1.14M
12.116 DEPARTMENT OF DEFENSE APPROPRIATION ACT OF 2003 $1.08M
15.035 FORESTRY ON INDIAN LANDS $1.07M
15.156 TRIBAL CLIMATE RESILIENCE $455,568
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $440,368
15.024 INDIAN SELF-DETERMINATION CONTRACT SUPPORT $407,322
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $384,095
66.926 INDIAN ENVIRONMENTAL GENERAL ASSISTANCE PROGRAM (GAP) $324,456
93.581 IMPROVING THE CAPABILITY OF INDIAN TRIBAL GOVERNMENTS TO REGULATE ENVIRONMENTAL QUALITY $236,540
11.469 CONGRESSIONALLY IDENTIFIED AWARDS AND PROJECTS $234,852
15.148 TRIBAL ENERGY DEVELOPMENT CAPACITY GRANTS $180,000
84.250 AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES $179,349
66.616 ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM $159,980
10.182 PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS $158,723
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS DIABETES PREVENTION AND TREATMENT PROJECTS $142,826
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $140,772
15.032 INDIAN ECONOMIC DEVELOPMENT $132,936
66.920 SOLID WASTE INFRASTRUCTURE FOR RECYCLING INFRASTRUCTURE GRANTS $132,406
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $131,128
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $122,278
20.823 PORT INFRASTRUCTURE DEVELOPMENT PROGRAM $110,000
66.817 STATE AND TRIBAL RESPONSE PROGRAM GRANTS $99,827
10.558 CHILD AND ADULT CARE FOOD PROGRAM $88,587
14.862 INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM $84,811
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $82,935
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $75,000
66.419 WATER POLLUTION CONTROL STATE, INTERSTATE, AND TRIBAL PROGRAM SUPPORT $59,360
15.685 NATIONAL FISH PASSAGE $54,106
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $39,366
15.033 ROAD MAINTENANCE INDIAN ROADS $33,605
30.401 Tribal Employment Rights Office $32,000
93.054 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE VI, PART C, GRANTS TO INDIAN TRIBES AND NATIVE HAWAIIANS $30,954
66.046 CLIMATE POLLUTION REDUCTION GRANTS $29,515
20.939 SAFE STREETS AND ROADS FOR ALL $20,000
11.437 FISHERIES DATA PROGRAM $12,715
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $11,364
93.047 SPECIAL PROGRAMS FOR THE AGING, TITLE VI, PART A, GRANTS TO INDIAN TRIBES, PART B, GRANTS TO NATIVE HAWAIIANS $9,874
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $9,284
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $6,005
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $5,625
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $3,179
10.680 FOREST HEALTH PROTECTION $2,987
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $2,916
66.202 CONGRESSIONALLY MANDATED PROJECTS $736